During a panel discussion hosted by the Urban Institute this past October, a panel
of experts said opportunity for commercial investors abounds in the single-family
rental market, despite higher home prices and tight inventories. Big-time investors still
only own a fraction of the single-family rental market — just over 200,000 units. This
represents about 1.5 percent of the total single-family rental market. Citing favorable
demographics, the panelists said that share could potentially go up to 5 percent,
bringing another 500,000 or so properties under the control of institutional players.

Commercial real estate downshifts

At the midpoint of this year, the commercial real estate market remained on solid
footing, despite a fairly sharp decline in sales volume through the first half of the year,
the Mortgage Bankers Association (MBA) reported. Through this past June, overall
sales volume was down 7 percent compared to the first half of 2016, the trade group
said. Sales of individual properties dropped 5 percent, and portfolio sales declined
by 10 percent compared to the first half of 2016, MBA said. Sales were still solid by
historic measures, however.

Financing woes still plague legal cannabis biz

The fledgling, but fast-growing, legal cannabis industry will get much bigger after
California opens up its huge market to recreational pot sales in January. In terms of
financing the multibillion-dollar industry, however, legal marijuana is no closer to
the mainstream business world, advocates say. Facing a host of regulatory and perceived legal threats, marijuana startups continue to be shut out from stable financing
and banking sources, cannabis advocates say. Lending largely remains the domain
of a patchwork of private money lenders and small equity players. That likely won’t
change until federal policies become clearer.

Commercial debt pushes above $3 trillion

Overall commercial and multifamily mortgage debt rose to $3.06 trillion at the end
of this past second quarter, according to the Mortgage Bankers Association. The outstanding debt rose by $48.7 billion, or 1.6 percent, over the first-quarter level, the
trade group said. Commercial banks held the largest share of commercial/multifamily
mortgages, $1.2 trillion, or 41 percent of the total debt.

Commercial prices move up again in August

The Real Capital Analytics (RCA) all-property index increased 1.1 percent this past
August, the third month in a row during which sales-transaction prices rose by

1 percent month over month. Year over year as of this past August, the index
gained 7. 3 percent. Prices have been sustained by a glut of available debt financing,
RCA analysts said. Asset owners have had the option to refinance their maturing
debt, rather than selling the property for less than the asking price. This dynamic has
driven buyers and sellers farther apart and lowered transaction volume, but it has
helped to sustain solid price growth. n

Continued >>

In BriefNews RoundupBy Victor Whitman

The total sales volume of significant officeproperties located in central businessdistricts during the first half of 2017,down 24 percent year over year

Source: Real Capital Analytics

In Numbers

Multifamily-property debt held in portfolio
or securitized by federal government-backed
entities as of the past second quarter —
representing 46 percent of total outstanding
multifamily debt

Source: Mortgage Bankers Association

The 60-day delinquency rate for multifamilyloans held by Freddie Mac this past secondquarter — at a historic low